• Report: #286580

Complaint Review: Countrywide Home Loans

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  • Submitted: Sun, November 25, 2007
  • Updated: Mon, February 11, 2008

  • Reported By:Walden New York
Countrywide Home Loans
P.O. Box 660694 Dallas, Texas U.S.A.

Countrywide Home Loans Countrywide is foreclosing using the Home Equity Loan instead of Mortgage to avoid Judicial involvement Dallas Texas

*Author of original report: UPDATE

*Author of original report: UPDATE

*Consumer Comment: Double check Loans

*Consumer Comment: Double check Loans

*Consumer Comment: Double check Loans

*Consumer Comment: Double check Loans

*UPDATE EX-employee responds: Multiple Issues not clarrified

*UPDATE EX-employee responds: Things to try

*Consumer Comment: I don't know if this will help but...

*Consumer Comment: Good Luck

*Consumer Comment: They probably want the home

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My brother passed away and I am the executrix of his estate. Countrywide is foreclosing on the Home Equity Loan instead of the mortgage to avoid Judicial involvement........meaning that the Home Equity Loan is a Deed of Trust instead of a Mortgage which would have to go thru the legal channels and give me some time to sell his home which my father built in the sixties.

My lawyer was saying that it is bizarre that they would foreclose using the Home Equity Loan but I was reading online that since a HEL is a Deed of Trust that they would only have to give me 90 days to 'cure the debt' and then 4 or 5 months after I am served they can foreclose without going to court.

My brother died for Heavens sake, he didn't deliberately not make his payments, he wasn't fired from a job, or quit and not have money. He died !!!
I understand that they want their money but please give me some time to sell the home. It took me 4 months to get the approval from the court to become the Executrix of his estate. I couldn't do anything before that as he died intestate (without a will).

This home is in the Hamptons in New York. These bloodsuckers want the money from the home and apparently don't want to share it with me as I am the only next of kin. I've tried to write to Sen. Hillary Clinton and others but to no avail. I wish I could get some help somewhere.

Barbie 793
Walden, New York
U.S.A.

This report was posted on Ripoff Report on 11/25/2007 10:48 AM and is a permanent record located here: http://www.ripoffreport.com/r/Countrywide-Home-Loans/Dallas-Texas-75266-0694/Countrywide-Home-Loans-Countrywide-is-foreclosing-using-the-Home-Equity-Loan-instead-of-Mo-286580. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
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Updates & Rebuttals

#1 Author of original report

UPDATE

AUTHOR: Barbie 793 - (U.S.A.)

I've sold the home for more than was owed to Countrywide and we've already had the closing. I lowered the price substantially because it was better to reap something as opposed to nothing. All I would have reaped from Countrywide would have been headaches and more headaches. Both the original mortgage and the Home Equity Loan were paid off. I received some money and all is well. Countrywide is no more as they were bought out. But I'd steer clear of Bank of America as well . (I believe they are the ones who bought out Countrywide. ).
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#2 Author of original report

UPDATE

AUTHOR: Barbie 793 - (U.S.A.)

I've sold the home for more than was owed to Countrywide and we've already had the closing. I lowered the price substantially because it was better to reap something as opposed to nothing. All I would have reaped from Countrywide would have been headaches and more headaches. Both the original mortgage and the Home Equity Loan were paid off. I received some money and all is well. Countrywide is no more as they were bought out. But I'd steer clear of Bank of America as well . (I believe they are the ones who bought out Countrywide. ).
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#3 Consumer Comment

Double check Loans

AUTHOR: Pam - (U.S.A.)

Think you might be confused there is something called a Home Equity Loan and this is a Loan that is taken out based on the value of the home. If there is a Home Equity Loan on the property this is a loan in addition to the Mortgage which means there is basically two loans on the home. A Mortgage and a Home Equity Loan which is basically like a second Mortgage on the home. Sounds like you need a new Lawyer if he is telling you that they are going after the Equity Loan to stay out of the Judicial part of it. Either way there is Judicial for either.
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#4 Consumer Comment

Double check Loans

AUTHOR: Pam - (U.S.A.)

Think you might be confused there is something called a Home Equity Loan and this is a Loan that is taken out based on the value of the home. If there is a Home Equity Loan on the property this is a loan in addition to the Mortgage which means there is basically two loans on the home. A Mortgage and a Home Equity Loan which is basically like a second Mortgage on the home. Sounds like you need a new Lawyer if he is telling you that they are going after the Equity Loan to stay out of the Judicial part of it. Either way there is Judicial for either.
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#5 Consumer Comment

Double check Loans

AUTHOR: Pam - (U.S.A.)

Think you might be confused there is something called a Home Equity Loan and this is a Loan that is taken out based on the value of the home. If there is a Home Equity Loan on the property this is a loan in addition to the Mortgage which means there is basically two loans on the home. A Mortgage and a Home Equity Loan which is basically like a second Mortgage on the home. Sounds like you need a new Lawyer if he is telling you that they are going after the Equity Loan to stay out of the Judicial part of it. Either way there is Judicial for either.
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#6 Consumer Comment

Double check Loans

AUTHOR: Pam - (U.S.A.)

Think you might be confused there is something called a Home Equity Loan and this is a Loan that is taken out based on the value of the home. If there is a Home Equity Loan on the property this is a loan in addition to the Mortgage which means there is basically two loans on the home. A Mortgage and a Home Equity Loan which is basically like a second Mortgage on the home. Sounds like you need a new Lawyer if he is telling you that they are going after the Equity Loan to stay out of the Judicial part of it. Either way there is Judicial for either.
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#7 UPDATE EX-employee responds

Multiple Issues not clarrified

AUTHOR: Impartial - (U.S.A.)

First, my condolences on the loss of your brother. My response is based on 6+ years in the Mortgage Foreclosue/bankruptcy servicing. I am simply going to suggest new ways to look at your problem.

* You indicated that you are the executor of your brother's estate. That implies State Probate or Family Court, which are State courts, involving State law. All Mortgage Banking, Foreclosure, and bankruptcy laws are Federal Law. If your Atty specializes in only State Inheritance law, find a second atty familiar with federal banking mortgage law. Where state law & federal law clash, federal law will prevail.

* One of the responders already pointed this out correctly. If the payments on the first lien are current, and the you're behind on the 2nd lien only, CHL had no choice but to file on the 2nd lien only. They may be two liens on the same address, but to the courts, they are two totally separate "legal contracts" between your late brother and CHL.

* Most mortgage companies don't begin your type of collection issues until the lien is at least 90 days delinquent. If the lien is less then 6 month delinquent, contact their "Work Out Department". The cost to process a property foreclosure usually amounts to about 10% of the FMV ("Fair Market Value") of any property, and another 15% of the FMV to turn around and re-market and resell the property. They would much rather work out a repayment plan on the 2nd lien arrearages if at all possible. This is especially true with the current mortgage industry ills.

If the past due amount is for more then 6 payments, consult an attorney as to whether, in your federal jurisdiction, you can file bankruptcy on behalf of your brother's estate. He's dead, so there is no harm to his credit report. There are also strategies available to you and your/his family, should the property go all the way to a foreclosure sale. I am not an attorney; you'll have to ask him or her.

* Finally, one of the responders is correct. The average percentage of loans, involving any mortgage company's own funds, is only around 10% of their total loan portfolio. The rest of the funds come from outside investors, such as insurance companies, mutual funds, & individual investors. Up to now, it was a safe investment, with adequate, safe returns, protected by the property's value. These investors will pull their funds if too many homes are foreclosed on. The mortgage industry is the driving force of the economy; the mortgage companies will do what they can to minimize their inventory of vacant homes.
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#8 UPDATE EX-employee responds

Things to try

AUTHOR: Hatestupidpeople - (U.S.A.)

1st they are not being bloodsuckers..........The investors whom actually own that property since they put up the funds can be some cruel people, they tell the servicer how it will go down.

Do they have 1st and 2nd lien or just 2nd lien. Because if they have jusy 2nd, then 2nd is only one that far behind. They do have legal right to FCL, but usually 1st lien will come in and buy out the 2nd if they property is valued worth it to do so. I have seen 1st lien holders give up the security in the property. Do some checking to whats happened.

Sorry also for your brothers Death.
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#9 Consumer Comment

I don't know if this will help but...

AUTHOR: Whut? - (U.S.A.)

Have you contacted the mortgage company that has first lien on the property or is it also Countrywide? If you already stated it is I'm sorry it's way early in the A.M here.

If not I would at least let them know what is happening, maybe they will pay of the equity loan to keep from losing what is probably a much higher value loan.

Good luck
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#10 Consumer Comment

Good Luck

AUTHOR: Cory - (U.S.A.)

Hillary is too busy running for pres. right now.
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#11 Consumer Comment

They probably want the home

AUTHOR: Nikki - (U.S.A.)

Based on the fact that you want to sell the home, it looks as though there is equity in it. Because of that, Countrywide probably wants the home and is taking it the easiest way they can.

Unfortunately, you should have continued making the payments. Now, to pay it off after the sale, you will have to pay late fees, attorney fees, foreclosure fees, etc., which will reduce your equity. The mortgage companies are not going to forego receiving any payments on the loan because someone has died. They want their money. I see you are learning that now.

Find out any additional fees they have added to pay the loan off as it may not be worth your while to try to sell it any longer. Those fees may have eaten up the equity, it just depends on how much equity there is.

I am truly sorry for your brother's death and the stress it has caused you.
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